Question 1

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Accepted Answer

A)   Upland has higher productivity and higher real GDP per person than Lowland.
B)   Upland has higher productivity but lower real GDP per person than Lowland.
C)   Upland has lower productivity but higher real GDP per person than Lowland.
D)   Upland has lower productivity and lower real GDP per person than Lowland.E) None of the above
F) A) and D)

Question 2

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Accepted Answer

A)   the United Kingdom
B)   Mexico
C)   Argentina
D)   ChinaE) All of the above
F) B) and C)

Question 3

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Accepted Answer

A)   producers will have greater confidence that they will benefit from their efforts.
B)   producers are likely to be more specialized.
C)   buyers and sellers will be more likely to honor contracts.
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 4

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 5

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

Accepted Answer

A)   one generation. In the last couple of decades China's growth rate has been higher than 12%.
B)   one generation. However, in the last couple of decades not even China's growth rate has been this high.
C)   three generations. In the last couple of decades China's growth rate has been higher than 12%.
D)   three generations. However, in the last couple of decades not even China's growth rate has been this high.E) C) and D)
F) None of the above

Question 6

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A)   produce a return to society from education that is greater than the return to the individual.
B)   could justify government subsides for education.
C)   are external benefits of education.
D)   All of the above are correct.E) None of the above
F) A) and D)

Question 7

Figure 25-1.
On the horizontal axis, K/L represents capital (K)  per worker (L) . On the vertical axis, Y/L represents output (Y)  per worker (L) . 
-Refer to Figure 25-1. Choose a point anywhere on the curve and call it point A. If the economy is at point A in 2011, then it will definitely remain at point A in 2012 if, between 2011 and 2012,

Accepted Answer

A)   the quantity of physical capital remains constant; the number of workers doubles; and human capital, natural resources, and technology all double as well.
B)   the quantity of physical capital doubles; human capital, natural resources, and technology all double as well; and the number of workers remains constant.
C)   the quantity of physical capital doubles; the number of workers doubles; and human capital, natural resources, and technology all double as well.
D)   the quantity of physical capital doubles; the number of workers doubles; and human capital, natural resources, and technology remain constant.E) A) and C)
F) A) and D)

Question 8

Over the period 1960-1990,

Accepted Answer

A)   South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP.
B)   the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP.
C)   South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP.
D)   the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP.E) A) and B)
F) A) and C)

Question 9

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Accepted Answer

A)   double and productivity will rise.
B)   double but productivity will not change.
C)   more than double and productivity will rise.
D)   more then double but productivity will not change.E) B) and C)
F) A) and D)

Question 10

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?

Accepted Answer

A)   Mexico
B)   Brazil
C)   the United States
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 11

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of...

Question 12

Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increased from 300 to 309. The price of copper increased by

Accepted Answer

A)   less than inflation, and this means it became relatively less scarce.
B)   less than inflation, and this means it became scarcer.
C)   more than inflation, and this means it became scarcer.
D)   more than inflation, but this doesn't necessarily mean that it become scarcer.E) B) and D)
F) A) and D)

Question 13

Which of the following is correct?

Accepted Answer

A)   There is no debate about the effects of higher population growth on economic growth.
B)   Natural resources clearly place limits on growth; there is simply no way to reduce either the amount or type of natural resources needed to produce goods.
C)   How much an increase in capital increases a country's output is independent of that country's current level of capital.
D)   Economists argue that outward rather than inward policies are likely to promote economic growth.E) C) and D)
F) B) and C)

Question 14

Thomas Malthus's predictions turned out to be wrong due to

Accepted Answer

A)   technological advances such as those during the Industrial Revolution.
B)   smaller populations now than in the time of Malthus.
C)   the effects of brain-drain.
D)   unlimited natural resources.E) A) and D)
F) A) and C)

Question 15

Which one of the factors of production originates as an output from the production process, and is subsequently used as an input into the production process?

Accepted Answer

The input ...

Question 16

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

A) True 
 B)False

Question 17

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Accepted Answer

A)   Y = 4L + 2K + 3H + N
B)   Y = (L + K + H + N) /4
C)   Y =2
D)   Y = 4E) A) and D)
F) B) and C)

Question 18

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?

Accepted Answer

A)   both the first and the second
B)   the first but not the second
C)   the second but not the first
D)   neither the first nor the secondE) A) and C)
F) A) and D)

Question 19

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Accepted Answer

A)   3% population growth and 4% real GDP growth
B)   3% population growth and 5% real GDP growth
C)   6% population growth and 4% real GDP growth
D)   6% population growth and 5% real GDP growthE) B) and C)
F) C) and D)

Question 20

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Accepted Answer

A)   India
B)   Mexico
C)   United Kingdom
D)   PakistanE) B) and D)
F) B) and C)

Exam 25: Production and Growth

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Correct Answer
verified

What is the difference between human capital and technology?

Correct Answer
verified
Technology is society's understanding of...
View Answer

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Which one of the factors of production originates as an output from the production process, and is subsequently used as an input into the production process?

Correct Answer
verified
The input ...
View Answer

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?

Correct Answer
verified

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?

Correct Answer
verified

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Correct Answer
verified

Thomas Malthus's predictions turned out to be wrong due to

Correct Answer
verified

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Correct Answer
verified

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Correct Answer
verified

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Correct Answer
verified

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Correct Answer
verified

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Correct Answer
verified

Over the period 1960-1990,

Correct Answer
verified

Educated people may generate ideas that increase production. These ideas

Correct Answer
verified

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Correct Answer
verified

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

Correct Answer
verified

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Correct Answer
verified

Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increased from 300 to 309. The price of copper increased by

Correct Answer
verified

Exam 25: Production and Growth

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Correct AnswerverifiedShow Answer

What is the difference between human capital and technology?

Correct AnswerverifiedTechnology is society's understanding of...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which one of the factors of production originates as an output from the production process, and is subsequently used as an input into the production process?

Correct AnswerverifiedThe input ...View AnswerShow Answer

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?

Correct AnswerverifiedShow Answer

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Correct AnswerverifiedShow Answer

Thomas Malthus's predictions turned out to be wrong due to

Correct AnswerverifiedShow Answer

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Correct AnswerverifiedShow Answer

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Correct AnswerverifiedShow Answer

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Correct AnswerverifiedShow Answer

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Correct AnswerverifiedShow Answer

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Correct AnswerverifiedShow Answer

Over the period 1960-1990,

Correct AnswerverifiedShow Answer

Educated people may generate ideas that increase production. These ideas

Correct AnswerverifiedShow Answer

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Correct AnswerverifiedShow Answer

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Correct AnswerverifiedShow Answer

Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increased from 300 to 309. The price of copper increased by

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Technology is society's understanding of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The input ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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